(Updated 5:02 p.m.) The benchmark PSEi slid less than a
percent while all sectors closed on red Tuesday as gold prices suffered
their biggest daily loss since 1983.
The index was down 51.44 points or 0.75 percent to close at 6,786.33.
Losers outnumbered gainers 115 to 42, while 46 stocks were unchanged. Over 2.3 billion shares worth P8.95 billion changed hands.
Analysts attributed the stock exchange's performance to Monday's 9-percent drop in the price of gold bullion, which tumbled another $125 per ounce. Reuters reports that this is gold's biggest-ever daily loss since 1983.
"Share prices dropped sharply, precipitated by the two-digit fall on gold prices," Asiasec Equities Inc. market strategist Manny Cruz said in a phone interview.
"Market is down obviously because of the fear of falling gold prices," said Gregg Ilag, equity analyst at AB Capital Securities Inc.
Ilag added that investors took profit today because of a high year-to-date performance at 17 percent.
"There is a downward share prices because of the tendency to liquidate their positions," llag said, noting that the pullback opens windows for investors to buy,
Asiasec's Cruz added that news of China's economy—which grew 7.7 percent in the first quarter, slower than the previous quarter's 7.9 percent—may have also dampened investors' confidence.
The local bourse opened Tuesday's trading with the index slumped by over one percent, with some analysts pointing out the Boston marathon bombing as triggering fear and cautiousness among traders.
But at the trading's close, "fear as of the moment was overblown," Ilag said.
Jonathan Ravelas, BDO Unibank chief market strategist, noted that investors remained on the sidelines to avoid risks.
"Risk aversion caused investors to sell and stay on the sidelines," he said in a text message, adding that bargain hunters would be prowling soon with the market above the 6,750 support level. — BM, GMA News
The index was down 51.44 points or 0.75 percent to close at 6,786.33.
Losers outnumbered gainers 115 to 42, while 46 stocks were unchanged. Over 2.3 billion shares worth P8.95 billion changed hands.
Analysts attributed the stock exchange's performance to Monday's 9-percent drop in the price of gold bullion, which tumbled another $125 per ounce. Reuters reports that this is gold's biggest-ever daily loss since 1983.
"Share prices dropped sharply, precipitated by the two-digit fall on gold prices," Asiasec Equities Inc. market strategist Manny Cruz said in a phone interview.
"Market is down obviously because of the fear of falling gold prices," said Gregg Ilag, equity analyst at AB Capital Securities Inc.
Ilag added that investors took profit today because of a high year-to-date performance at 17 percent.
"There is a downward share prices because of the tendency to liquidate their positions," llag said, noting that the pullback opens windows for investors to buy,
Asiasec's Cruz added that news of China's economy—which grew 7.7 percent in the first quarter, slower than the previous quarter's 7.9 percent—may have also dampened investors' confidence.
The local bourse opened Tuesday's trading with the index slumped by over one percent, with some analysts pointing out the Boston marathon bombing as triggering fear and cautiousness among traders.
But at the trading's close, "fear as of the moment was overblown," Ilag said.
Jonathan Ravelas, BDO Unibank chief market strategist, noted that investors remained on the sidelines to avoid risks.
"Risk aversion caused investors to sell and stay on the sidelines," he said in a text message, adding that bargain hunters would be prowling soon with the market above the 6,750 support level. — BM, GMA News
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